CHICAGO – United Airlines’ decision to stop funding its employee pension funds in bankruptcy stirred further turmoil Wednesday when a union leader who also serves as a company director said he would boycott United’s impending pension deliberations.
Randy Canale, whose machinists’ union has threatened a lawsuit against United’s move, said he would not attend a board meeting scheduled today while the union is preparing to take legal action.
“United is breaking a promise to employees to make another promise to lenders,” said Canale, who is president of District 141 of the Machinists’ union and holds one of two union spots on the company board. “I will not be party to their illegal efforts.”
Other union groups also have condemned United’s pension funding cutoff, which the company says is necessary to preserve cash and more easily attract the exit financing it needs to get out of bankruptcy.
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